MLC was an insurance company. MLC gave negligent advice to a policy holder, Evatt, about the financial stability of a subsidiary company that later collapsed. the court applied a two step test in deciding that MLC was liable: (1) the defendant must realise or the circumstance must be such that they ought to have realised that the plaintiff intended to act upon the information or advice in connection with some matter of business or serious importance, and (2) the circumstances must be such that it is reasonable in all circumstances for the plaintiff to accept and rely upon the advice.

Read the above case scenario of negligent misstatement and write down how we can solve this.